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Another bank on which Bove dropped coverage, KeyCorp's second quarter profit was its first since the financial crisis. During a conference call with analysts after releasing the results, bank management said credit trends were improving, and that it was focusing on investment management businesses in an effort to boost revenues.

FBR Capital Markets analysts wrote following the earnings release that they earnings potential was their main concern, due to "continued deleveraging and weaker-than-expected net interest margins."

"Given tepid loan demand, we believe that
KeyCorp's
balance sheet will likely continue to shrink over the next several quarters, which should weigh on earnings," the report stated.

Debt analysts at
GimmeCredit upgraded KeyCorp in August, arguing it is "relatively less exposed to consumer loans than some peers," and has cut construction loan exposure to $3.4 billion from $6.1 billion a year ago.

As of 2PM ET on Thursday, Keycorp shares were trading down 2.29% at $8.10.

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